CategoryBusiness

What to Look for and Avoid When Signing a Home-Building Contract (2018)

Building your own home can bring your dreams to life if you find the right building contractor.  When you are comparing the options available there are various things to consider like the new house price per sqm as stated on buildsearchs website and the total cost quoted by each contractor. When you have narrowed down the contractor who would suit your requirements the most thorough research the home-building contract you would be signing. Find a licensed contractor with an insurance and also get in touch with the prior clients to get a better idea about the contractor’s methods. Hire professionals to verify the building plans as well as the legalities in the process. Check whether the building contract talks in detail about the scope of work. There should be a clear definition of the specifications and the allowed levels of deviation. This would ensure that when the contractor makes changes in the building plan or a few elements in the specification, later on, there would be a legal document to support your claims.

Here are a few things which should be avoided in the contract –

  1. Unclear timelines

There are timelines specified in most contracts. But the allowed reasons for delays or postponement of the completion date are missed out in some contracts. Avoid contracts without clarity on these conditions. Also, make sure that there aren’t too many flexibilities provided for the extension of timelines.

  1. Stringent payment terms

There should be a clear definition of the payment patterns and the relationship with the building progress. Avoid situations where payments are demanded as decided without the building progress not taking place as promised.

  1. Unclear or irrelevant warranty terms

Most people ignore this area. But make sure that you understand the terms of warranty and check whether the warranty timelines are actually practical. Coverage of the warranty terms after your move in date would be relevant.